Blame the 'Stock Vault'?

Clearinghouse Faulted
On Short-Selling Abuse;
Finding the Naked Truth

By

John R. Emshwiller and

Kara Scannell

Updated July 5, 2007 12:01 a.m. ET

Depository Trust & Clearing Corp. is a little-known institution in the nation's stock markets with a seemingly straightforward job: It is the middleman that helps ensure delivery of shares to buyers and money to sellers.

About 99% of the time, trades are completed without incident. But about 1% of the shares -- valued at about $2.5 billion on a given a day -- aren't delivered to the buyer within the requisite three days, for one...